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Report Published: "Indonesia Autos Report Q4 2014".

[USPRwire, Fri Sep 12 2014] We forecast the passenger car segment to continue outperforming the commercial vehicle (CV) segment in 2014. Despite that, we expect a slight slowing in car sales growth to 8.5% in 2014. Auto sector growth will rebound to previous levels in 2015, with a 9.6% rise.

According to Association of Indonesian Automotive Industries (Gaikindo), domestic vehicle sales in June 2014 came in at 110,560 units, an increase of 6.0% year-on-year (y-o-y). Sales were boosted by the low-cost green car (LCGC) segment. This brought total H114 sales to 642,323 units, an increase of 6.7% y-o-y. For 2014, we forecast auto sales to grow 7.1%, to 1.32mn units. Production figures have remained steady in 2014. In June they were recorded at 116,840 and are expected to increase gradually in the second half of 2014 and into 2015.

We expect the passenger car segment to continue to outperform the CV segment in 2014. However we expect a slight deceleration in car sales growth to 8.5%. This decrease in growth is only temporary as sales growth is predicted to rise to 9.6% in 2015. The Low Cost Green Car (LCGC) scheme, introduced in September 2013, recorded sales of over 50,000 units in 2013 and in H114 alone recorded 85,463 sales - giving the industry a significant boost. The availability of fuel-efficient variants in this segment will give consumers an alternative in an environment of higher pump prices and we see these eco-car models continuing to buoy passenger car sales in 2014. That said, our Country Risk team believes that inflation will remain fairly elevated in 2014 and this will erode consumers' purchasing power ( see 'Mounting Headwinds Despite Consensus-Beating Growth', February 6). Furthermore, this is likely to keep Bank Indonesia's hawkish stance unchanged at least in H114. With 70% of auto sales requiring some form of financing, we cannot neglect the impact of higher interest rates on consumer loans, and our lower passenger car sales growth forecast for 2014, compared with 2013's...

Full Report Details at

- http://www.fastmr.com/prod/872609_indonesia_autos_report_q4_2014.aspx?afid=302

The Indonesia Autos Report features the latest data and forecasts covering production, sales, imports and exports.

Business Monitor International (BMI)'s Indonesia Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on the automotives market in Indonesia.

Key Benefits

* Benchmark BMI's independent automotives industry forecasts on Indonesia to test other views - a key input for successful budgetary and planning in the Indonesian automotives market.

* Target business opportunities and risks in the Indonesian automotives sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Indonesia.

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Publication:USPRwire
Geographic Code:9INDO
Date:Sep 12, 2014
Words:475
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